Investment Criteria
Crafting Success: Dark Alpha Capital's Investment Criteria Illuminates Pathways to Prosperity. With Discerning Vision and Strategic Precision, We Seek Opportunities Aligned with Growth Potential, Innovation, and Long-Term Value Creation
Financial & Geographic
- Based in United States
- $1 million+ of EBITDA
- Track record of stable earnings and cash flow generation
Industry
- Long-term and stable growth drivers
- Fragmented industry with a large addressable market
- Limited cyclicality or commodity exposure
- Low risk of obsolescence / tech disruption
Business
- Multiple levers for growth
- Pricing power
- Good visibility, driven by reoccurring revenue and low customer concentration
Our Favorite Industries
Manufacturing
Business Services
Healthcare
Aerospace & Defense
Industrial Services
We know what it feels like to sell a business, so we've made it as easy as possible for you.
You've worked hard to build your business, and you have choices. You can work with another private equity and go through the typical process or consider the Dark Alpha alternative–which is built on trust, professional respect, and thoughtful guidance for continued value creation.
Whatever your motives are to sell your business–or seek an investment–the process should be painless and straightforward. Whether you would like to stay with the business going forward or move to your next venture, we're committed to being true partners in the journey ahead.
Traditional Private Equity Process
- Hire an Investment Banker / Broker - 1 Month
- Build and Populate Data Room - 1 Month
- Buyers Outreach - 2 Months
- The Dog and Pony Show - 1 Month
- Term Sheets + Negotiations + LOI - 2 Months
- Due Diligence - 1-2 Months
- Q&As + Renegotiations - 1 Month
- Closing - 1-2 Months 50% Probability
Dark Alpha Capital Process
- The Business Statement – A Letter by You
- Expression of Interest – A Letter by Us - 1 Day
- Analysis of Business - 2-5 Days
- A Fair Offer from Us - 1 Day
- The Handshake - 2-3 Days
- Closing - 8 -10 Weeks
What do we need from you to get started?
Business Statement
Send us an letter explaining your competitive advantage. Some examples of the things we're looking for: A dominant brand, a large and loyal community, a niche vertical, or something similar with 5+ years of operating history.
Financials
Share your historical financials. We're primarily looking for a profitability benchmark between $1M to $10M per year.
Future Plans
Tell us about your desires for the future of the business. Would you like to continue to run it or would you like to transition out? If you would like to stay, how do you see growing the business and where do you see the opportunities?